Quote:yes 2 to 11% of direct cost sounds correct. Its the hidden cost of extra tests and screens run. It cannot be exactly determined. But notice your estimate of 'defensive medicine' 45 billion.

 

Consider this: "the American Academy of Orthopedic Surgeons cited estimates that, by reducing defensive medicine, liability reform could result in yearly savings from $54 billion to $650 billion."

Source: http://medicaleconomics.modernmedicine.c...e-medicine

 

Also this from Jackson Healthcare: ""If physician estimates are accurate, this means that $650-850 billion per year is spent on lawsuit-driven medicine." Once again about 30 - 34%.

http://www.jacksonhealthcare.com/media-r...lease.aspx

 

That is about a third the cost of healthcare. Personally I believe that it is more like 40-50% total and a majority of tests are done defensively. It goes far beyond just the 'lawsuit.'

 

I read the JAMA article that the lower estimate comes from. They were fairly selective in their methodology and only included what they called 100% defensive. You can't do that. Its a false low.